Texas governor signs bill banning residential wholesale-indexed power plans

Texas has enacted three laws designed to address issues arising from the deadly mid-February winter storm, in which about 4 million customers lost electricity over several days and power bills skyrocketed, and the newest such law bans residential wholesale-indexed power plans.

As the Texas Legislature's regular session was drawing to its close May 31, lawmakers advanced several other storm-related bills, but out of 34 bills proposed, only three have been signed into law and two have cleared both chambers. Lieutenant Governor Dan Patrick has called for an emergency session in June, but prospects for that remain unclear.

The most recent moves involve the state Senate amending and then passing on May 27 two House bills, and both concern the issuance of ratepayer-backed bonds to defray excess costs incurred from the storm. House Bill 1520 allows securitization of excess natural gas costs, and House Bill 4492 allows securitization of default amounts owed to the Electric Reliability Council of Texas because of the storm.

The state House of Representatives would have to approve these bills without change for them to be sent for Governor Greg Abbott's signature. Alternatively, the House could reject the changes, and the two chambers would have to form a conference committee to resolve differences.

Abbott on May 26 signed House Bill 16, which bans the sale of wholesale-indexed power plans to residential customers, effective Sept. 1.

Also on May 26, the House approved without amendment Senate Bill 415, which allows transmission and distribution utilities to own battery storage systems. Therefore, that bill awaits the governor's action.

The House on May 25 approved without amendment Senate Bill 1580, which allows electric co-ops to issue ratepayer-backed bonds to defray excess storm costs.

Busy conference committees

Also on May 25, the Senate rejected House amendments to Senate Bill 2154, which increases the Public Utility Commission's membership from three to five, and appointed conferees.

Meanwhile, House Bill 10, which changes the qualifications and process of appointing unaffiliated ERCOT board members, has been awaiting a vote by the full Senate since May 25. Senate Bill 2, which addresses similar issues, was amended and approved by the full House on May 24 but may be headed to conference committee, unless the Senate concurs with the amendment.

Also, the House on May 24 rejected Senate amendments to House Bill 3648, which requires designation of certain gas facilities as critical during energy emergencies, and appointed conferees.

Another bill that may be headed to conference committee is Senate Bill 3, an omnibus bill covering emergency pricing, weatherization requirements, gas supply chain mapping and other issues. The House amended and approved the bill May 24.